"i am 100% maximum bullish" re china, hk did a double, and so, with buffett calling same, we should do a triple, and given usa will fight deflation to the death of your savings, hk should double again, at least
Well, I hope that they are right.. But I'm fearing that the US banks have some major issues pending with their foreclosure procedures that could tie things up for years in a legal morasse.
cnbc.com
It's certainly one of the VERY negative consequences of securitizing MBS and turning mortgage debt into equities, via CDOs.. etc. Another problem is the MERS system, that is facing growing legal challenges in US courts:
stopforeclosurefraud.com
I'm personally of the view that some semblance of Glass-Steagall needs to be reintroduced and get mortgage debt out of the "mark to market" game that the CDS speculators love so much.
I perceive see more de-leveraging to come, and banks hesitant to lend, at least to small businesses and "main street".
And until main street America is back on their feets and liquid, the Fed is going to be pushing on a string.
IMO, the best the Fed can hope for is to create a trading range for the stock markets and hope to keep low-digit positive growth.
But most importantly, until Naked CDS are render illegal, any increase in the markets is merely a set-up for a future decline.
And this is going to have ramifications on the entire world, not just the US.
Hawk |
